If you’ve been driving for any length of time, you know that comprehensive insurance can cost you an arm and a leg. So why is it so expensive? And how can you lower your comprehensive insurance rates?
It’s Expensive Because…
Cars cost a lot to repair. If you’ve been in even a little fender-bender, you have some idea of how much it can cost to fix up minor body damage. Needless to say, insurance companies aren’t going to want to come good for such damage on any kind of regular basis. So, because someone else has had a little accident, your rates go up, and the insurance company continues to make money.
Now, How Do You Lower Your Rates?
There are a number of things you need to know in order to lower your comprehensive insurance rates. Read on.
Drive a Junker
Seriously. If you drive a new car, your rates will be higher, even if you’re only carrying PLPD, which you won’t be able to do if you have a loan on your car.
Own Your Car
If you don’t own your car, you don’t have a whole lot of say in the kind of insurance you’re going to carry – your lender does. And that lender wants to protect its investment, which means high rates for superior protection.
Choose a High Deductible
Take the minimum coverage with a high deductible.
Don’t Drive Much
If you don’t have to go from Point A to Point B, don’t. Lower your mileage and get a better rate on your insurance. Insurers know that the more you drive, the greater the risk of you getting into an accident and costing them a ton of money.
Boost Your Credit Score
You might be surprised to know that one of the ways your insurance company predicts the likelihood of you getting in an accident is by looking at your credit score. Oddly enough, they figure that people who have higher credit scores are more careful with money, as well as other things, like driving.
Clean Up Your Driving Record
If you have citations on your record, you can ask to have them removed. Little things like speeding tickets and parking violations can often be erased on request if they’re not recent.
Look for a Better Rate
Shop around. Different insurance companies offer different rates.
Remember, It’s All About Business
Your insurance agent isn’t your friend. He or she is not there to help you. That said, though, most of the time they’ll try to get you the best deal because they want to keep you coming back. They also know that the longer they keep you around, the less likely you’ll be to bail in favor of a company with better rates.
So, work with your agent, and ask for every available discount. Your comprehensive insurance doesn’t have to be ridiculously high, but you need to know the right questions to ask in order to lower it.